Limited number of substitutes (Caterpillar)

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A limited number of substitutes mean that customers cannot easily find other products or services that fulfil their needs. Limited substitutes are a positive for Caterpillar. … This statements will have a short-term positive impact on this entity, which adds to its value. "Limited number of substitutes (Caterpillar)" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it. This qualitative factor will lead to an increase in costs.

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